Salesforce, Inc. CRM is set to release its first-quarter fiscal 2027 earnings on May 27, and investors will be closely watching whether the company’s aggressive artificial intelligence (AI) strategy is beginning to translate into stronger financial performance.
The broader economic environment remains uncertain, with enterprises still cautious about spending. However, demand for cloud-based software and productivity tools remains reasonably strong. Salesforce appears to be benefiting from this trend, given its strong position in customer relationship management software and its expanding AI offerings.
Click here to know how Salesforce’s overall fiscal first-quarter results are likely to be.
Salesforce, Inc. Price and EPS Surprise
Salesforce, Inc. price-eps-surprise | Salesforce, Inc. Quote
Agentforce Supports Salesforce’s Subscription Growth
Salesforce is making AI a central part of its long-term growth strategy. Management believes AI agents capable of performing tasks independently will eventually become deeply integrated into day-to-day business operations. To capture this opportunity, Salesforce has been rapidly expanding its Agentforce platform.
Agentforce helps companies automate functions such as customer service, marketing and sales workflows through AI-powered agents. By embedding these tools across its cloud ecosystem, Salesforce is encouraging customers to spend more within its platform instead of relying on outside software providers.
Salesforce’s Agentforce platform is gaining solid momentum. Agentforce’s annual recurring revenues (ARR) reached nearly $800 million in the fourth quarter of fiscal 2026, representing a massive 169% year-over-year surge. The company also revealed that the platform has crossed 29,000 customer deals, showing that enterprise demand for AI-driven automation remains strong.
AI products are also helping Salesforce deepen relationships with existing customers. More than 60% of AI-related bookings came from current clients, highlighting strong cross-selling opportunities across the company’s broad product portfolio. These strategies are reigniting growth momentum in Salesforce’s subscription and support segment revenues. The segment has registered double-digit revenue growth in each of the last three quarters of fiscal 2026, an impressive recovery from single-digit increases in earlier quarters.
Overall, Agentforce is becoming an important growth driver for Salesforce. The platform is likely to have driven the company’s overall subscription and support revenue growth in the first quarter. The Zacks Consensus Estimate for the subscription and support segment’s first-quarter fiscal 2027 revenues is pegged at $10.54 billion, indicating a year-over-year increase of approximately 13.3%.
Salesforce’s Zacks Rank and Other Stocks to Consider
Currently, CRM carries a Zacks Rank #2 (Buy).
Atlassian TEAM, Bill Hodings BILL and A10 Networks ATEN are some other top-ranked stocks that investors can consider in the Zacks Internet – Software industry. Atlassian, BILL Holdings and A10 Networks each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Atlassian’s fiscal 2026 earnings has moved upward by 16.3% over the past 30 days to $5.48 per share, calling for an increase of 48.9% year over year. Atlassian shares have plunged 58.7% in trailing 12 months.
The Zacks Consensus Estimate for BILL Holdings’ fiscal 2026 earnings is pegged at $2.59 per share, revised upward by 4 cents over the past seven days and suggests a year-over-year rise of 17.2%. BILL Holdings shares have fallen 18.6% over the past year.
The Zacks Consensus Estimate for A10 Networks’ 2026 earnings has been revised upward by 3 cents to $1.05 per share over the past 30 days. A10 Networks’ shares have surged 71.2% over the past year.
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Salesforce, Inc. (CRM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).